Caesars Entertainment Corporation (CZR) versus Golden Entertainment (NASDAQ:GDEN) Critical Analysis
Caesars Entertainment Corporation (NASDAQ: CZR) and Golden Entertainment (NASDAQ:GDEN) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, valuation, profitabiliy, institutional ownership, risk and earnings.
Risk and Volatility
Caesars Entertainment Corporation has a beta of 0.32, meaning that its share price is 68% less volatile than the S&P 500. Comparatively, Golden Entertainment has a beta of 0.04, meaning that its share price is 96% less volatile than the S&P 500.
Valuation & Earnings
This table compares Caesars Entertainment Corporation and Golden Entertainment’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Caesars Entertainment Corporation||$3.89 billion||0.46||$756.00 million||($21.45)||-0.56|
|Golden Entertainment||$418.82 million||1.09||$44.95 million||$0.80||25.66|
Caesars Entertainment Corporation has higher revenue and earnings than Golden Entertainment. Caesars Entertainment Corporation is trading at a lower price-to-earnings ratio than Golden Entertainment, indicating that it is currently the more affordable of the two stocks.
This table compares Caesars Entertainment Corporation and Golden Entertainment’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Caesars Entertainment Corporation||-81.33%||N/A||-33.98%|
This is a breakdown of current ratings for Caesars Entertainment Corporation and Golden Entertainment, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Caesars Entertainment Corporation||0||0||5||0||3.00|
Caesars Entertainment Corporation presently has a consensus target price of $14.90, indicating a potential upside of 24.43%. Golden Entertainment has a consensus target price of $13.00, indicating a potential downside of 36.68%. Given Caesars Entertainment Corporation’s stronger consensus rating and higher probable upside, equities analysts clearly believe Caesars Entertainment Corporation is more favorable than Golden Entertainment.
Insider & Institutional Ownership
67.5% of Caesars Entertainment Corporation shares are held by institutional investors. Comparatively, 27.5% of Golden Entertainment shares are held by institutional investors. 4.6% of Caesars Entertainment Corporation shares are held by insiders. Comparatively, 52.0% of Golden Entertainment shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Caesars Entertainment Corporation beats Golden Entertainment on 7 of the 13 factors compared between the two stocks.
Caesars Entertainment Corporation Company Profile
Caesars Entertainment Corporation is a holding company. The Company provides casino-entertainment and hospitality services. The Company’s segments include Caesars Entertainment Resort Properties, LLC (CERP), Caesars Growth Partners, LLC (CGP) and Other. The Company’s facilities include gaming offerings, food and beverage outlets, hotel and convention space, and non-gaming entertainment options. As of July 14, 2017, the Company through its subsidiaries, operates 47 casinos in 13 states and in five countries. As of December 31, 2017, the Company has over one million square feet of gaming space and approximately 24,000 hotel rooms. As of December 31, 2016, CERP owned six casinos in the United States and The LINQ promenade along with leasing Octavius Tower at Caesars Palace Las Vegas (Octavius Tower) to Caesars Entertainment Operating Company (CEOC) and gaming space at The LINQ promenade to CGP. As of December 31, 2016, CGP owned six casinos in the United States.
Golden Entertainment Company Profile
Golden Entertainment, Inc. is a group of gaming companies. The Company focuses on distributed gaming, including tavern gaming, and casino and resort operations. It operates through two segments: Distributed Gaming and Casinos. Its Distributed Gaming segment involves the installation, maintenance and operation of gaming and amusement devices in certain strategic, high-traffic, non-casino locations (such as grocery stores, convenience stores, restaurants, bars, taverns, saloons and liquor stores) in Nevada and Montana, and the operation of traditional, branded taverns targeting local patrons, primarily in the greater Las Vegas, Nevada metropolitan area. As of December 31, 2016, its distributed gaming operations consisted of approximately 10,400 gaming devices in approximately 960 locations. Its Casinos segment consists of the Rocky Gap Casino Resort in Flintstone, Maryland and three casinos in Pahrump, Nevada: Pahrump Nugget Hotel Casino, Gold Town Casino and Lakeside Casino & RV Park.
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